Parent Corp. bought 100% of Jack Inc. on January 1, 20x1, at a price in excess of the subsidiary's fair value. On that date, Parent's equipment (10-year life) had a book value of $360,000 but a fair value of $480,000. Jack had equipment (10-year life) with a book value of $240,000 and a fair value of $350,000. Parent used the partial equity method to record its investment in Jack. On December 31, 20x3, Parent had equipment with a book value of $250,000 and a fair value of $400,000. Jack had equipment with a book value of $170,000 and a fair value of $320,000. Which is the consolidated balance for the equipment account as of December 31, 20x3?

$710,000 $580,000 $474,000 $497,000 $565,000

On September 1, 20x1, Peter Inc. issued common stock in exchange for 20% of Sal Inc.'s outstanding common stock. In July of 20x3, Peter issued common stock for an additional 75% of Sal's outstanding common stock. Sal continues in existence as Peter's subsidiary. How much of Sal's 20x3 net income should be reported as accruing to Peter?

20% of Sal's net income to June 30 and all of Sal's net income from July 1 to December 31 20% of Sal's net income to June 30 and 95% of Sal's net income from July 1 to December 31 95% of Sal's net income All of Sal's net income